CAGE MATCH

December 15, 2016

2016 has to be one of the strangest years in memory, and as far as we’re concerned, it can’t get over soon enough.

America is completely exhausted after a Presidential election that played like a World Wrestling Federation grudge match. We don’t just need rest after the 15 round freak show we were forced to witness, we need therapy. Maybe a package of group sessions with Dr. Phil, or something.

Hopefully that’s what the New Year will bring. Some rest from the crazy. The cage match has finally ended, even if Hillary wants a recount. Trump and the Republicans have strutted out of the ring with the championship belt, and we wish them well. But for now, we just want a break.

2016 has also been one of the strangest stock markets we can remember, and November stayed right on script. In case you weren’t watching, the S&P 500 went down nine straight days to open the month, which happened to be the longest stretch of declines in 36 years. Then on election night, the Dow Jones Industrial futures crashed 801 points overnight. No worries. By the time the market opened it had recovered all the losses and then some, and proceeded to sprint to all-time highs over the next couple of weeks. Not to be outdone, small-caps went on a 15-day stretch of up days, its longest streak in over 20 years. Even the WWE couldn’t write this kind of script.

But that’s not even the strangest part. While the U.S. indices were hitting all-time highs- lead by financials, materials, and the itty-bitty companies- a huge number of stocks were imploding. Large technology, gold and silver, real estate, and utilities must not have received the memo, as their down moves couldn’t have been more polar opposite. None of it could have been predicted, and none of it can be reasonably explained, even for veteran traders. Just one head scratching surprise after another. That’s just the nature of this wacky, chaotic year we are almost done with.

In our November Newsletter we felt the stock market would figure a direction once the election was over, and it appears that direction is up. Even without the help of the large cap tech, like the FANG stocks (Facebook, Amazon, Netflix, and Google, now Alphabet), real estate, gold, and utilities. Maybe they will eventually play catch up, who knows? But unless the bears can wake up and fast, we could continue to see more and more highs in the indices well into next year.

That’s the overall picture. But more importantly, how has your money been doing in this topsy-turvy year? Are you wearing the championship belt? Or have you owned stocks that have been the recipient of one of The Undertaker’s Last Ride, or Stone Cold Steve Austin’s Stunner, and you feel like you have been in the grips of a submission hold? If so, don’t be discouraged. Believe us, you are not alone. Even the most experienced and successful stock market wrestlers have spent some time on their backs in 2016, victims of a few beat downs.

If you feel like you have had a chair taken to the back of your head during this 2016 WWE Stock Market Smack Down, we encourage you to perform a quick kick out, pull your underwear up, and find your corner. In every WWE main event, circumstances always reverse and the underdog somehow miraculously wins. For you to win you simply must find the winning side of the trades. So as we finally put a lid on this crazy year, resolve to pay close attention to your investments now more than ever, and make sure your portfolio is on top when the referee starts his count. Because when it comes to money, everyone is wrestling for the championship belt.